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Business and finance

22 Jun 18

Settlement reached over Bay Bridge claims

The joint venture of American Bridge and Fluor that built the eastern span of the San Francisco-Oakland Bay Bridge (SFOBB) has reached agreement in a multi-million-dollar contract dispute with the client.

The Toll Bridge Program Oversight Committee (TBPOC) in the US state of California met yesterday (21 June) and approved the settlement, which had been agreed during mediation ahead of arbitration.

Under the agreement, the JV will receive US$25.5 million; in addition a fine of US$8.5 million relating to faulty anchor rods will be waived. The settlement provides a final contract value of US$1,995,759,002.10.

On 23 May 2016, the contractor filed a complaint seeking a total of more than US$49 million plus interest and legal fees. Various issues of dispute included tower anchor rod grouting, time-related overhead costs, shear key bolts and contract liquidated damages.

The contractor claimed it was owed an additional US$40.68 million in payments pursuant to the contract. It also claimed that there was no justification under the contract for the US$8.5 million being sought by California’s transport department, Caltrans.

The TBPOC was urged to approve the recommended settlement; otherwise the arbitration legal proceedings were set to begin in August. The committee was warned by Caltrans chief deputy district director Dan McElhinney and Caltrans SFOBB principal construction manager Steven Whipple that continuing with the case could mean interest and legal fees taking the state’s exposure to US$60 million or more.